A National Audit Office investigation found that more than £180 million of public money was spent on changing operational PFI projects in 2006. But this includes an estimated £6 million in management fees ‘not justified' in terms of the work needed.
The price charged for supplying a new key, for example, varied between £4.26 and £47.48.
Edward Leigh, chairman of the Public Accounts Committee, said that the public sector had been ‘taken for a ride'.
‘Public sector contract managers for PFI deals have insufficient commercial expertise to negotiate with and develop effective relationships with their private sector counterparts,' he added.
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